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Cellular South Files Lawsuit Against AT&T over T-Mobile Takover

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Tuesday, 20 September 2011

Cellular South Files Lawsuit Against AT&T over T-Mobile Takover


After AT&T announced the proposed buyout of T-Mobile several companies have opposed the merger indicating it was anti competitive. Sprint has lead the charge by filling suits to block the merger, but other companies like Cellular South are getting into the action to stop this from happening. "AT&T's proposed takeover of T-Mobile would profoundly impact the interests of the wireless industry as a whole," said Eric Graham, Cellular South Vice President for Strategic & Government Relations. "If AT&T were to complete this deal, not only would it substantially lessen competition, but it would essentially consolidate the market into the hands of the 'Big Two' – AT&T and Verizon." 

Press Release:

Washington, D.C. – Cellular South today filed suit to block AT&T's planned acquisition of T-Mobile. The suit was filed under Section 7 of the Clayton Act in the U.S. District Court for the District of Columbia. The lawsuit has been filed as a related case to both the Department of Justice (and seven state Attorneys General) and the Sprint Nextel antitrust litigation against the proposed transaction.

Cellular South's complaint states that AT&T's proposed takeover of T-Mobile must incorporate a review from the perspective of regional carriers, like Cellular South.

"AT&T's proposed takeover of T-Mobile would profoundly impact the interests of the wireless industry as a whole," said Eric Graham, Cellular South Vice President for Strategic & Government Relations. "If AT&T were to complete this deal, not only would it substantially lessen competition, but it would essentially consolidate the market into the hands of the 'Big Two' – AT&T and Verizon."

Graham added: "Today's filing is another step in Cellular South's unwavering effort to pursue the best interests of competition, wireless consumers, and our nation's economy."

Cellular South's complaint explains that further consolidation of market power in the hands of AT&T and Verizon would mean that:

- regional carriers, like Cellular South, will not be able to obtain the latest wireless devices in a timely fashion and at a reasonable cost;

- Cellular South and other regional carriers will be forced to pay higher roaming prices – assuming that they are able to obtain roaming agreements at all; and

- consumers throughout the country will face higher prices, less innovation, fewer choices, and reduced competition.



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